Wandsworth - South London

We like South London as an area for buy-to-let investments for a number of reasons and, to date, all the properties that we have purchased in London for Clients are in the South London area, as is our own portfolio.

We are talking about the area that stretches from New Cross in the east through to Wandsworth in the west and south to include Dulwich, Balham & Tooting with Battersea & Clapham at the centre.

The two main reasons are that:
1. There is a constant year-round demand for quality houses and flats for professional sharers.

2. There is a reasonably good year-round supply of suitable properties at prices that still just about make sense.

TENANT PROFILE

As regards our tenant profile, the majority are young professionals either working in the City or working locally in the service sector, which includes the professional, IT and leisure worlds.

The reason for this demand is that the tenant's workplace is either local, or within reasonable commuting distance, and the leisure 'hotspots' of Chelsea through to the West End are easily accessible whilst there is a very good local leisure infrastructure as well.

There are also abundant green areas, a lack of high-rise buildings, with the exception of some ex-local blocks, and a feeling of openness that is often lacking in inner city environments.

For these reasons we believe that there will continue to be a sustainable on-going tenant demand for the foreseeable future and certainly for the next 10 years.

PROPERTY PROFILE

As regards the property profile, the majority are ex-local authority properties, bought by their owners under the 'Right to Buy' schemes, who are now selling on.

Throughout this area there are numerous developments where over 60% of the properties are now in private ownership.

These developments are slowly gentrifying and provide relatively spacious accommodation, when compared to modern purpose-built properties, and are often located close to public transport, which is a must, and close to good leisure and shopping facilities, which is also a must.

The price of this type of property has more than doubled over the past 3-5 years and whilst that level of growth is no longer ongoing, there is still reasonable growth potential.

Generally there is no problem mortgaging these properties provided that the property, if a flat, is in a low-rise block with a maximum of 5 storeys/levels.

Often we find that the property, be it a house or flat, requires 'modernisation', which will cost circa £ 15-20k.

In some flats coal bunkers still exist as well as solid wall larder cupboards in the kitchen, both of which we remove and bring the space into better use.

Whilst the property may have central heating the old coal fired back-boiler is often still in-situ, which again we remove and the space converted into an alcove, and, if not present, a Combi Boiler is installed and existing hot water tanks removed and the space converted to storage.

The property, whether a house or flat, will almost certainly require rewiring to comply with today's standards and often both the kitchen and bathroom need updating with the addition of a good shower.

We always install built-in wardrobes in the bedrooms, floor to ceiling and as large as possible.

When showing these properties the size of our wardrobes always draws favourable comments from prospective tenants.

All this work is necessary to attract the type of tenant referred to, as they have high standards when it comes to the interior of the properties that they rent.

They are looking for good value and are quite prepared to rent 'ex-local' property provided that it all stacks up, that is location, gentrification and high quality interiors.

PRICES & RENTS

As at Jan 2005, prices and rents that we are working with are a follows:

• 1 Bed Flat - 100-130k - 180-200pw
• 2 Bed Flat - 140-160k - 220-260pw
• 3 Bed Flat - 160-185k - 300-350pw
• 3 Bed House -185-240k - 320-360pw

The primary return is capital growth. If you are looking for income then consider investing out of London. The market is always active and we expect to have to make an offer on the day, or at the latest, the day after viewing.

FOR FURTHER INFORMATION

The following links take you to the Up My Street pages on the various locations.

• Battersea
• Balham
• Clapham
• Dulwich
• Earlsfield
• Kennington
• Stockwell
• Tooting
• Wandsworth